19 December 2005
Watch out for unscrupulous doorstep lenders this Christmas, a new report by the Housing Corporation has warned.
Loan-sharks stand to make up to £37 million over the festive season by exploiting the UK's poorest social groups, it was predicted, with bloated interest rates varying from 150 to 600 per cent.
The survey indicates that low-income families who do not qualify for access to high street credit cards or bank accounts are particularly at risk.
The closure of 3,100 bank and building society branches since 1995 is also thought to have cut off some communities from mainstream financial services.
The Housing Corporation has encouraged people to set up basic bank accounts where possible, or to use credit unions that offer free advice and cheaper loans.
Jon Rouse, chief executive of the Housing Corporation, said: "Every parent is under the same pressure to make Christmas special for their children, but if they borrow from doorstep lenders, they risk the roof over their heads in return for a day's happiness."
Earlier in the year pressure group Debt on our Doorstep called on the government to impose limits on the amount of interest charged by home credit agencies.
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